SafeNet spins out its classified government solutions business

Gus G. Sentementes

SafeNet Inc., a Harford County cybersecurity company, said that it was selling off its government solutions business to an undisclosed buyer for an undisclosed amount.

The Belcamp company said in an announcement that it was selling this part of its business -- which largely focuses on custom-made classified encryption products -- to focus on data protection and cybersecurity for its commercial and government customers. The company had acquired the government solutions business in 2004, according to Securities and Exchange documents.

After the sale, which is expected to be completed by the end of this year, SafeNet's revenues would total over $350 million a year, the company said. The company did not disclose the revenues of its government solutions business.

SafeNet is owned by Vector Capital, a San Francisco-based private equity firm. Two years ago, the company filed for an IPO, seeking to raise $300 million in a stock sale. But the company never launched the stock sale, and in March withdrew its IPO plans from the Securities and Exchange Commission.

According to IPO documents filed last year, SafeNet had $454 million in revenues and a $900,000 loss in 2010.

It has more than 1,500 employees, including 170 connected to the government solutions business, most of whom are based in Torrance, Calif.